Market Maneuvers

Two things tripped my radar on the economy. First is the gas prices and the rise in oil prices.(71.00 ^) There is a point where it is counter productive to the economy.

I don’t know that exact number but already the gas prices are having an effect. And excessive inventories have gone down. Consumer demand goes down, even while the economy is heated up. So when does the lower demand cool the economy?

The second is a lesser known rise in lumber and building material costs. Lumber futures increased 66% over the last year. (Bloomberg) That’s stunning. What effect will that have on the economy? Maybe the better question is what effect will both factors have on the economy — and on growth? At a time when we are trying to break 3% growth.

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